Starting from Short-Run Equilibrium,the Following Occurs: Individuals Expect Higher (Future)incomes

question 33

Multiple Choice

Starting from short-run equilibrium,the following occurs: individuals expect higher (future) incomes and wage rates rise.What is the effect on the price level and Real GDP in the short run?

• A) The price level rises and Real GDP rises.
• B) The price level falls and Real GDP falls.
• C) The price level rises,but the effect on Real GDP cannot be determined.
• D) Real GDP rises,but the effect on the price level cannot be determined.
• E) Real GDP falls,but the effect on the price level cannot be determined.

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Definitions:

Ownership Culture

A work environment where employees have a stake in the company's success and act like owners.

Gainsharing

A performance-based compensation system where the savings from increased productivity are distributed among employees and the company.

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Exclusive dining areas within a company or organization that are reserved for senior management or executives, often seen as a symbol of status or privilege.

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The relative importance or prestige assigned to a job or position within an organization, which can affect motivation and job satisfaction.